Under the Better Blend franchise agreement, which organization administers the arbitration process?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 17. DISPUTE RESOLUTION
17.1 Arbitration.
- (a) Disputes Subject to Arbitration. Except as expressly provided in subsections (c) and (d), any controversy or claim between the parties (including any controversy or claim arising out of or relating to this Agreement or its formation and including any question of arbitrability) shall be resolved by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.
- (b) Location. The place of arbitration shall be the city and state where BBF's headquarters are located.
- (c) Injunctive Relief. Either party may apply to the arbitrator seeking injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved. Either party also may, without waiving any remedy or right to arbitrate under this Agreement, seek from any court having jurisdiction any interim or provisional injunctive relief.
- (d) Intellectual Property Claims.
Either party may bring a claim involving an alleged infringement of any of BBF's intellectual property rights in a court authorized to hear such claims under Section 17.5 of this Agreement.
- (e) Confidentiality.
All documents, information, and results pertaining to any arbitration or lawsuit will be confidential, except as required by law or as required for BBF to comply with laws and regulations applicable to the sale of franchises.
- (f) Performance During Arbitration or Litigation.
Unless this Agreement has been terminated, BBF and Franchisee will comply with this Agreement and perform their respective obligations under this Agreement during the arbitration or litigation process.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, any disputes between Better Blend and a franchisee, with a few exceptions, will be resolved through arbitration. The arbitration process is administered by the American Arbitration Association (AAA), following its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. This means that the AAA will oversee the selection of the arbitrator, the scheduling of hearings, and other procedural aspects of the arbitration. The judgment made by the arbitrator can be enforced in any court with proper jurisdiction.
There are a couple of exceptions to this arbitration rule. Either party has the option to seek injunctive relief from an arbitrator while awaiting the final arbitration award or resolution. Additionally, either party can pursue interim or provisional injunctive relief from a court without giving up their right to arbitrate the dispute. Better Blend also retains the right to pursue claims involving alleged infringement of its intellectual property rights in a court authorized to hear such claims.
The location for the arbitration will be the city and state where Better Blend's headquarters are located. All documents, information, and results related to any arbitration or lawsuit will be kept confidential, unless disclosure is required by law or for Better Blend to comply with laws and regulations related to the sale of franchises. During the arbitration or litigation process, both Better Blend and the franchisee are required to continue complying with the terms of the Franchise Agreement and fulfill their respective obligations, unless the agreement has been terminated.
For a prospective Better Blend franchisee, understanding this arbitration clause is crucial. It means that most disputes will be handled outside of the traditional court system, which can potentially save time and money. However, it also means giving up the right to a jury trial. The confidentiality clause is also important, as it restricts the franchisee's ability to publicly discuss the dispute. Franchisees should also be aware that they are expected to continue operating their Better Blend business and meeting their obligations under the Franchise Agreement even while a dispute is ongoing.